July 02, 2011

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July 23, 2011

July 30, 2011

Sometimes, to get perspective on an issue, I go to an expert on the subject. Thus I called Euturn Wright, America’s
leading authority on economic development. My first question was, “Why has it been so long since I last heard from you?”

“Youngster,” he erroneously called me, “aside from the fact that few seek my services, Indiana hasn’t
had enough economic development recently to attract my attention.”

“But,” I challenged, “the
Indiana Department of Commerce … ”

Euturn interrupted me. “The Indiana Department of Commerce?
Did you ever search for them on the Web? Know what you get on Yahoo? You get the Department of Corrections.”

“That’s not important,” I said. “Today’s Commerce Department is, in effect, a subsidiary of
the Indiana Economic Development Corp. Isn’t the IEDC doing a bang-up job?”

“They do announce
many ventures and many jobs,” he said. “But I find it hard to assess their long-term success. Certainly it is
not in their annual report. In fact, the latest annual report on their Web site is for 2007.”

“Oh,”
I responded, “cut them some slack. IEDC does what needs to be done: helps firms find communities in Indiana where they
can be successful.”

“Yes,” Euturn admitted. “I saw that announcement last week about Think
announcing its plan to build its all-electric City car in Elkhart County. I know you find that especially important because
you have been working with the Elkhart Development Corp.”

I blushed in acknowledgement.

“No
need to be embarrassed,” he said. “We both know that economists make no specifically useful contributions to such
decisions. But this was a fine moment for the principal parties.

“Think is unlike some companies whose announcements
have been widely publicized. They actually produce a product. That was not a fantasy or even a prototype that local citizens
drove last week. It seems the Think City will be the first electric car produced in America in this century. With its 100-mile
range, the City should have a strong market among economy/environmentally minded commuters.”

“But,
at $30,000, it might be priced too high,” I said.

“That’s hard to assess,” he said, “It’s
in the neighborhood of the expected price for General Motors’ Volt, which does not offer even half the City’s
range. But look at the bigger picture. Think will buy its batteries from EnerDel, which is in Indiana already. They will need
other parts from other suppliers. That’s opportunity for Indiana automotive suppliers to get in this electric-car market
at ground level.”

“True, very true,” I said.

“But Elkhart County,” he
said, “needs to rethink itself. This, and most other projects in the county, did not originate locally. This investment
is from somewhere else, using ideas and talents from elsewhere. Here is a county that puffs itself up as the recreational-vehicle
capital of the nation, with lots of talk about its ‘entrepreneurial’ record. Thus far, however, local entrepreneurs
and the RV industry are largely missing from the picture.”

“I don’t understand,”
I admitted. “What do you want?”

“I,” he laughed. “I don’t want anything. I
merely find these scraps of truth instructive. Maybe Elkhart County needs to ask itself if there is long-term economic value
in being the RV or even the electric-vehicle capital of the nation. Would more extensive diversification be more advantageous?
As for its entrepreneurial nature, is that an accurate and meaningful claim?”

Marcus
taught economics for more than 30 years at Indiana University and is the former director of IU’s Business Research Center.
His column appears weekly. He can be reached at mmarcus@ibj.com.

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Marcus is director emeritus of the Indiana Business Research Center at the Kelley School of Business. He has contributed to local and state economic development efforts since 1970. In addition to teaching economics at Indiana University for 33 years, Marcus has served six Indiana governors as an adviser on taxation and economic development. None of his advice has been taken. Marcus was the governor’s liaison to the U.S. Bureau of the Census from 1979 to 2003, has testified before Congress, appeared on the PBS “News Hour with Jim Lehrer,” and consulted with firms and governments throughout the United States and in Southeast Asia. A native of Brooklyn, N.Y., Marcus has earned degrees in economics from Roosevelt University in Chicago, Washington University in St. Louis, and the University of California-Los Angeles. He and his wife, Rebecca, reside in Indianapolis. They have three children, six grandchildren, six cats, a dog and a heavy mortgage.

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